Focus Press creditors and employees are anxiously awaiting the outcome of a huge $12.9m insurance claim to know whether they will get back any of the money the collapsed print firm owes them.

According to reports to creditors obtained by ProPrint, Focus Press’ total debts exceed $27.3m, including more than $19m for the company’s Sydney and Canberra operations and more than $8.3m in the brand new security printing site Wollongong, which is a separate business entity.

While secured creditors will get some or all of their pounds of flesh from the sale of specified assets, including buildings in Sydney, plants and equipment, the more than 200 unsecured trade creditors and about 208 employees will not get much back unless a $12.9m insurance claim against Zurich Engineering Plant Insurance is approved.

[Related: The demise of Focus Press]

The claim is for damage and business interruption caused by the breakdown of the KBA 12-colour B1 perfector press last November at the Wollongong site, and includes $8.2m for Focus Illawarra Pty Ltd and $4.7m for the main Sydney and Canberra business Focus Press Pty Ltd.

The reports to creditors states that in the event of the claim being paid out, the businesses should have just enough money to pay out all creditors and employees in full.

Administrators Worrells Solvency and Forensic Accountants (for Focus Press Pty Ltd) and Holzman Associates (for Focus Illawarra) seem confident the claim will be approved, writing ‘do not expect a deficiency, it is expected that business interruption insurance should cover any shortfall’ in their initial reports.

Administrators at Holzman wouldn’t comment on the progress of the claim, but it is understood it is not yet approved and its prospects for success are unclear.

The amounts owed to a huge array of creditors range from $5.5m to the Industry Department for its grant to build the Wollongong site, and $4.5m for the National Australia Bank, which is a secured creditor, to the Printing Industries NSW Golfing Society, owed $88, and Maglab Magnets, owed $40.

[Related: More credit and debt news]

Australia’s two biggest paper merchants were hit particularly hard, they knew the game was up and withdrew supply on April 11, sending Focus into freefall. Spicers says it is owed almost $2.6m and BJ Ball claims more than $591,000. KW Doggett, which got out of its relationship with Focus five months earlier, escapes with only $23,733 owed to it. Ink provider Toyo Ink is owed $133,210.

Press manufacturers also took a hit, Fuji Xerox is owed $961,734, almost $100,000 of which is unsecured; Heidelberg Print Finance is owed almost $2.3m, some of which could be recouped from secured assets but $69,175 owed to Heidelberg Graphic Equipment is unsecured. KBA was left off the list, but ProPrint understands the amount owed for repairs to the Wollongong press are at least $200,000.

Canon is owed a secured $342,691 and Oce $43,098. Unsecured amounts are owed to Kodak, $40,550, and finishing solutions supplier Ferag to the tune of $133,992.

Other trade creditors include Cyber, owed $317,655, Horizon Binding Services, $75,744, distributor Pack One & Post, $132,109, and laminating business TLC, $85,000. Many printers, trade finishers and small suppliers are owed significant sums, which may tip them over the edge.

Focus also owes money to several financial institutions other than NAB, including Commonwealth Bank which financed the KBA press to the tune of $1.15m, which it has as a secured asset, and is owed $2.1m total across the businesses.

Other financial institutions include Investec, $216,425, Macquarie Leasing, $148,450, and GE Commercial, $465,000.

The government is another big creditor – outside of the almost $5.5m claimed by the Industry Department for the 2012 grant to build the Wollongong plant, the Office of State Revenue is owed $147,494, and the Australian Taxation Office, $808,645.

[Related: More companies in distress]

The about 208 employees across both businesses are owed about $2.5m in wages and entitlements, with the biggest sums owed to chief executive and financial controller Alan Davis, $243,815, and administration manager John Corrigan, $156,963.

As usual, the biggest winners are the administrators, with Worrells taking home $183,229 and Holzman estimating fees of $40,000-$50,000, according to the reports to creditors.

The reports also say a sale of assets immediately prior to the businesses entering administration is expected to generate about $2.5m across both sites, subject to creditor approval. It says that the Focus bank account contains the grand sum of $14,647.

The Wollongong plant, built for $12m and opened earlier this year, and its remaining assets, are now only valued at $2.7m, according to Holzman’s report.

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.  

Sign up to the Sprinter newsletter